Power Division Projects Rs2.56 Per Unit Rise in November Bills
“Electricity consumers may face a projected Rs2.56 per unit fuel cost adjustment in November bills for September’s generation costs.”
Key points
- Electricity consumers may face a projected Rs2.56 per unit fuel cost adjustment in November bills for September’s generation costs.
- Authorities said targeted load management helped prevent a much larger increase, while industry representatives continue to challenge parts of the existing consumption package.
ISLAMABAD: Electricity consumers could see a fuel cost adjustment of Rs2.56 per unit reflected in their November bills, according to projections released by the Power Division for September’s generation costs. The estimated adjustment is linked to the use of more expensive fuels in the power mix and is expected to have an overall impact of about Rs32.7 billion on consumers.
The projected charge would be higher than the Rs1.11 per unit fuel cost adjustment applied for August. Officials said the increase was driven by rising international fuel prices and pressure on liquefied natural gas supplies, developments that raised the cost of generating electricity during the month under review.
The division said a substantially larger increase had been avoided through targeted load management and other measures. It estimated that the adjustment could have been between Rs5 and Rs6 per unit without those steps, meaning consumers were spared an additional burden of up to Rs3.44 per unit.
According to the statement, targeted load management lasting roughly two to two-and-a-half hours during September reduced reliance on costly furnace oil and high-speed diesel. The provision of imported re-gasified liquefied natural gas for generation at domestic gas prices was also cited as helping to ease the expected burden by 83 paisa per unit.
The announcement comes as energy markets remain unsettled by the Middle East conflict and disruptions to supply routes following the closure of the Strait of Hormuz. Authorities said Pakistan was continuing to arrange contracted LNG supplies and seek additional spot cargoes where needed, despite constraints in the international market.
The Power Division said the combined effect of fuel-price and quarterly tariff adjustments from January through August had been limited to 65 paisa per unit, or 1.9 per cent of the base electricity tariff. It linked this outcome to tariff-rationalisation efforts and a consumption package aimed at industrial and agricultural users.
Industry representatives, however, have questioned the claimed benefits of the incremental-consumption package. They argue that the marginal rate offered to selected consumers may add to the average tariff paid by other users. The regulator has already held a public hearing on whether to revise or suspend the package, but a decision is still awaited.
The projected November adjustment is not final until the regulatory process is completed. Consumers, businesses and farmers will be watching the decision closely, as any increase in electricity costs could add to household expenses and operating costs at a time when fuel-market volatility remains a major risk for Pakistan’s power sector.
Corrections & clarifications
Spot an inaccuracy or need more detail? Email connect@newsnexus24.com. Significant updates are timestamped above.